UnitedHealth Stock Surges 11.6% After Berkshire Hathaway Acquisition and Merger Approval

UnitedHealth Group's stock surged 11.6% after Berkshire Hathaway acquired a significant stake and regulators approved a major merger with Amedisys Inc. The investment is seen as a vote of confidence in the health insurer, whose stock had fallen significantly this year. Other top investors, such as Michael Burry, also initiated new stakes in the company. UnitedHealth's shares are volatile, but the news significantly impacted the market's perception of the business.

UnitedHealth Group's stock surged 11.6% after Berkshire Hathaway acquired a significant stake and regulators approved a major merger with Amedisys Inc. The investment is seen as a vote of confidence in the health insurer, whose stock had fallen significantly this year. Other top investors, such as Michael Burry, also initiated new stakes in the company. UnitedHealth's shares are volatile, but the news significantly impacted the market's perception of the business.

On July 1, 2025, Warren Buffett's Berkshire Hathaway made a substantial investment in UnitedHealth Group, purchasing more than 5 million shares worth approximately $1.6 billion [4]. This marks Berkshire's first stake in UnitedHealth since selling out in 2010, when Buffett exited the stock amid a broader retreat from health insurers. The move positions UnitedHealth as Berkshire's 18th-largest equity holding, behind Amazon and Constellation Brands [4].

Regulators also approved a major merger between UnitedHealth Group and Amedisys Inc., clearing the way for the $3.3 billion acquisition [2]. The settlement, which was filed in a Maryland district court, addresses antitrust concerns raised by the DOJ and the plaintiff states. To proceed with the acquisition, UnitedHealth and Amedisys must divest 164 home health and hospice locations across 19 states, valued at roughly $528 million in annual revenue [2].

The merger settlement also requires UnitedHealth to divest 8 additional locations if it fails to secure regulatory approval for the agreed-upon divestitures. Amedisys has agreed to pay a $1.1 million civil penalty to the US government for not fully complying with regulators during the merger review process [2]. The merger was completed on July 1, 2025, with Amedisys becoming a wholly owned subsidiary of UnitedHealth Group [3].

The approval of the merger and Berkshire Hathaway's investment have significantly impacted UnitedHealth's stock, which surged 11.6% on July 1, 2025, closing at $300.5 [4]. Other top investors, such as Michael Burry's Scion Asset Management, also initiated new stakes in the company. Burry disclosed a combination of call options tied to 350,000 UnitedHealth shares and a direct holding of roughly 20,000 shares valued at around $6 million [4].

The renewed institutional interest in UnitedHealth comes despite a challenging year for the company, weighed down by surging medical costs, a Justice Department investigation into Medicare billing practices, the fallout from the killing of a top executive, and a cyberattack last year [4]. UnitedHealth's rally was further underpinned by fresh disclosures of hedge fund buying, with Dodge & Cox, Appaloosa, and Renaissance Technologies also increasing their stakes in the company [4].

References:
[1] https://www.investmentweek.co.uk/news/4517757/unitedhealth-group-shares-surge-buffetts-berkshire-hathaway-takes-usd16bn-bet
[2] https://finance.yahoo.com/news/unitedhealth-amedisys-merger-cleared-doj-065121134.html
[3] https://ca.investing.com/news/sec-filings/amedisys-completes-merger-with-unitedhealth-group-delists-from-nasdaq-93CH-4159191
[4] https://stocktwits.com/news-articles/markets/equity/unitedhealth-surges-warren-buffett-michael-burry-buy-stake-retail-traders-see-monster-day-ahead/chsP7yIRdOz